Know Your Investment: Expert answers your stock queries

Published on Sat, Oct 08, 2011 at 13:10 |  Source : Moneycontrol.com

Updated at Mon, Oct 10, 2011 at 09:35  

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Know Your Investment: Expert answers your stock queries

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The domestic market closed yesterday's trade on a positive note. The NSE Nifty snapped a four-session long losing streak with a 135 point pullback, ending at 4888.05, while the BSE Sensex was up by 440 points and closed at 16232.54.

So, what should be the strategy investors should follow going forward? Moneycontrol.com's initiative, Know Your Investment, brings you answers to the queries you asked us on our Facebook page :

Salman Jiwani: I have bought GMR Infra at Rs 30, should I hold or sell?

A: The stock has corrected reasonably and the long-term opportunities in infrastructure remain positive. So, I would suggest you hold the stock for a while. Also, the cost of fund for these companies shall decline going forward as rates soften, which will bode well.

Ajay Bansal: I have bought L&T Finance at an average price of Rs 47.76. Should I continue to Hold or Sell?

A: Hold and buy on dips. L&T Finance is one of the best managed NBFCs in the country. Also, it will be one of the key contenders for the banking license.

Vishalanand Debbadi: I have been holding 500 shares of Suzlon at Rs 95 since two years, what is the future of it?

A: Near-term problems for this company are likely to persist. Though we have a positive outlook, the challenges are far too many in the near-term such as high debt, product performance issues and high interest cost.

Dinesh Dhamaija: What is the future of Ansal Properties ; I bought 5000 shares at Rs 165 each in 2008?

A: The whole realty pack faces major pressure because of high borrowing costs and low volume sales.

Charanjeet Sait: I have bought IFCI at Rs 35 and Reliance Communication at Rs 79, shall I sell or hold?

A: I would suggest a hold on IFCI, and sell on rise in Reliance Communication.

Bala Subramanian: What about Tata Steel , PFC , REC ?

A: Hold Tata Steel. PEC and REC have been corrected due to rising interest rates and concerns on asset quality of their projects. We expect this to play out in the next few years and the long-term potential is set to come out in these companies. So, it is a hold for them too.

Manoj Kumar: When will Reliance Power reach IPO price which is Rs 290 after bonus?

A: I can't say when.

Ratnesh Nagori: Is it a good time to invest in Coal India ?

A: Yes it is. Coal India stock price has corrected and in our opinion, reflects the negative impact of the proposed mining bill. The new regulation will lead to decline in earnings between 6-10% under various scenarios. However, we remain positive for long-term.

Ren Varghese: What about ADAG group?

A: I am not very keen on ADAG given the high borrowing and regulatory concerns on most of the group companies.

Shareef Mannur: What about Hanung Toys ?

A: No comments. We do not trade this stock.

Suyash Kant: How would you suggest distribution of stocks? Please name the sectors based on their risk-return in the current scenario.

A: My picks would be: Financials, consumer goods, pharmaceuticals, IT services, oil & gas

Kumarvipin Vipin: Which share is best for investment in the long term?

A: The same as above- Financials, consumer goods, pharma, IT services, oil & gas

 

  

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